'Insufficient housebuilding is restricting the number of homes available for sale, and when demand begins to pick up again, this will create pressure on prices.

'With wages falling and rents still rising, first-time buyers are often left with very little to put towards a deposit each month.'

The South West enjoyed the highest annual growth, with prices rising by 6.1 per cent in the year to April. This was followed by the West Midlands, at 5.9 per cent.

The property market was given some support last month, when the Bank of England's Monetary Policy Committee voted to keep interest rates on hold at 0.5 per cent.

This has helped sustain cheap mortgage deals,however, buyers are also facing hefty property prices growing above the rate of inflation and wage growth, stamp duty charges and other fees. This can make buying a first home or moving up the property ladder a daunting and expensive prospect in today's market.

We hope more sellers appreciate the difference between vanity and sanity when it comes to recognising these new market conditions

Jeremy Leaf, London estate agent

‘As a result, the increase in house prices is more to do with the lack of supply of appropriate property in places where people most want to live rather than a marked improvement in confidence.

‘Looking forward, we do not expect major change but do hope more sellers appreciate the difference between vanity and sanity when it comes to recognising these new market conditions.’

Mike Scott, chief property analyst at Yopa, said: 'Over the next few months, it is likely that prices will continue to rise, but with the annual rate of growth falling closer to 2 per cent than 4 per cent.

'London is also likely to fall further behind, perhaps turning negative as has already happened in other reports that use more recent data.'

A special message from MSN:

Nine million people across all age groups and walks of life in Britain are affected by loneliness. We've partnered with giving platform Benevity to raise funds for three charities - Mind, the Campaign to End Loneliness, and Wavelength – to tackle this debilitating and complex issue. You can help make a difference - please donate now.